The CFPB is funded through the Fed, and the Director is authorized to request money on a quarterly basis subject to a $663 million funding cap for fiscal year 2018. Cordray had asked the Fed for $217 million for the first quarter of 2018, and his 2018 budget was set at $630.4 million. Mulvaney says he expects the agency only needs $145 million in the second quarter.
Mulvaney has not revealed what operations he intends to trim. The two biggest ticket items in Cordray’s 2018 fiscal year budget were Centralized Services ($188.6 million) and Supervision, Enforcement and Fair Lending ($166.5 million). Cordray had set aside $269.5 million for employee compensation for 1,792 full-time equivalent employees; 754 of them in the area of Supervision, Enforcement and Fair Lending. But CFPB employees are generally protected by the federal merit system, making it very difficult for the Director to fire them.